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INNight shift differential
A night shift differential is extra pay — usually a percentage of the base rate or a flat amount per hour — for working evening or overnight hours. It recognizes that nights are harder to staff and harder to live with, and it is one of the main tools US employers use to keep late shifts covered.
How it works in the United States
Federal law does not require premium pay for night work. The FLSA treats an hour at 3 a.m. the same as an hour at 3 p.m.; a differential exists only where an employer's policy, a union contract, or a public-sector pay scale creates one. Two rules still apply once it does:
- It counts toward overtime: a night differential is part of the employee's regular rate, so overtime on a week with night hours is calculated on the higher blended rate, not the base wage alone.
- Policy must be applied consistently: once promised, a differential is an enforceable wage term, and uneven application can raise discrimination concerns.
There is no standard amount — healthcare, manufacturing, and hospitality each have their own norms. What matters is writing the rule down clearly: which hours qualify, what the premium is, and how it interacts with overtime.
No federal requirement — FLSA, 29 U.S.C. § 207 requires only that any differential paid be included in the regular rate for overtime; terms are set by employer policy or collective bargaining.
Tommy lets you attach different rates to different shifts, so night premiums show up in the roster's cost as you plan — and in the hours you hand to payroll.